From the HERE City National Desk
HSINCHU, Taiwan — Taiwan Semiconductor Manufacturing Co. reported a record profit for the third quarter on Thursday, its sixth record quarter in a row, as worldwide demand for artificial intelligence chips kept its factories running near full tilt.
The chipmaker said net income of NT$763.06 billion for the quarter that ended Sept. 30, a jump of 68.7% from the same period last year. Revenue reached NT$1,494.24 billion, or $46.72 billion in U.S. dollars, and earnings came to NT$29.43 per share.
Both revenue and profit came in above what analysts had forecast. The operating margin of 58.7% topped the upper end of the range the company had projected, a sign of the pricing power TSMC holds while customers race to secure advanced chips.
Leading-edge production drove the results. Chips made on 7-nanometer and more advanced processes accounted for 79% of wafer revenue, with the 3-nanometer node alone making up 33%. By platform, high-performance computing produced 68% of revenue, while smartphones contributed 21%.
Looking ahead, TSMC projected revenue of $52.3 billion to $54.3 billion for the final three months of the year, with a gross margin of 65% to 67%. Management pointed to continued demand for its newest processes, including the steep ramp-up of 2-nanometer production.
TSMC also expects to spend much more on new capacity across 2026 to 2028 than it did over the prior three years. Its quarterly free cash flow reached NT$476.56 billion, more than triple the level of a year ago.
